OFAC Cuba Sanctions FAQ: Part VI – Trade/Business

44. Is Cuba open for U.S. business and investment?

Persons subject to U.S. jurisdiction are prohibited from doing business or investing in Cubaunless licensed by OFAC. An OFAC general license authorizes the exportation from the UnitedStates, and the reexportation of 100% U.S.-origin items from third-countries, to Cuba only inthose cases where the exportation or reexportation is licensed or otherwise authorized by theCommerce Department. The Commerce Department currently authorizes limited categories ofitems to be exported or reexported to Cuba.

45. Can U.S. trade delegations travel to Cuba?

Trade delegations are authorized to travel to Cuba only if each member of the delegation meetsthe criteria of an applicable general license authorizing travel to Cuba or has obtained a specificlicense from OFAC. Authorized trade delegations generally fall under one of two generallicenses for travel authorization; either (1) 31 CFR § 515.533(d), which authorizes travel-relatedand other transactions incident to the exportation of certain authorized goods from the U.S. toCuba, specifically the conduct of “market research, commercial marketing, sales negotiation,accompanied delivery, or servicing in Cuba of items consistent with the export or report licensingpolicy of the Commerce Department,” or (2) 31 C.F.R. § 515.564(a), which authorizestransactions related to professional research or professional meetings in Cuba. For a completedescription of what these general licenses authorize and the restrictions that apply, please see 31CFR §§ 515.533(d) and 515.564(a).

Neither of the aforementioned general licenses authorizes the establishment of a permanentphysical presence in Cuba.

46. Are insurers allowed to provide travel insurance for authorized travel to Cuba?

Yes. See 31 CFR § 515.560.

47. May U.S. insurers issue policies and pay claims related to group health, life, and travelinsurance on behalf of third-country nationals traveling to or within Cuba?

Yes, provided that the insurance policy is as global policy. Section 515.580 of the CACRauthorizes persons subject to U.S. jurisdiction to issue or provide global health, life, or travelinsurance policies for individuals ordinarily resident in a country outside of Cuba who travel to orwithin Cuba, regardless of whether the insurance policy is issued only to that individual or to agroup, such as to all employees of a particular company. For instance, a U.S. insurer may paymedical claims pursuant to a group health insurance policy to or on behalf of a covered third-country national injured while traveling in Cuba. However, this provision does not authorize aperson subject to U.S. jurisdiction to issue an insurance policy that is specific to travel to Cuba. A separate provision of the CACR, 31 CFR § 515.560, authorizes the provision of health,life, and travel insurance-related services for authorized U.S. travelers.

48. Are insurance policies that are issued to a “group” (e.g., an employer and its employees)authorized by the CACR?

Section 515.580 of the CACR authorizes global insurance policies covering individuals ordinarilyresident in a country outside of Cuba traveling to Cuba. The policy may be issued to a group,such as all employees of a company. The “global” requirement means it cannot be specific totravel to Cuba. For example, it does not authorize an individual travel policy issued to a travelerspecifically to cover a planned trip to Cuba. It also does not authorize issuing a policy to a non-U.S. travel agent specifically to cover its traveler clients where the travel agency is solely in thebusiness of planning trips to Cuba.

49. What types of Cuban-origin goods are authorized for importation into the United States?

Persons subject to U.S. jurisdiction authorized to travel to Cuba may import into the United Statesas accompanied baggage merchandise acquired in Cuba with a value not to exceed $400 perperson, including no more than $100 in alcohol and tobacco products.Persons subject to U.S. jurisdiction are also authorized to import certain goods produced byindependent Cuban entrepreneurs as determined by the State Department, to be set forth in theState Department’s Section 515.582 list.

The importation into the United States from Cuba of information and informational materials isexempt from the prohibitions of the Cuban Assets Control Regulations. The definition of“information and informational materials” may be found at 31 CFR § 515.332.

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